For a lender or an insurer, the processing of a transaction entails multiple steps. For example, in a transaction involving a secured loan for the purchase of an item, a lender would receive a loan application, evaluate (e.g., adjudicate, credit score) the applicant, and verify information contained in the application. The loan evaluation process may further include, for example, searches or inquiries of various commercial and government databases to obtain additional information needed to make a loan decision. The lender inquiry may then require to be posted at a credit bureau.
If the loan were granted, then the lender would generate a specified loan agreement for execution by the borrower. The lender would then generally take a security interest if financing a property unit (e.g., the collateral). The rules for recording a security interest may vary by jurisdiction or item (e.g., the U.C.C. or title interest in the U.S. and the P.P.S.A. in Canada) and are generally effected at the county, state, provincial, or federal level. Recording the security interest can be performed, for example, either manually by the lender or via a service that provides the recording (e.g., via facsimile or electronically). Once a transaction is initially processed, tracing an asset, individual, or entity and the recovery of an asset or loan balance due to fraud, theft, or default may require access to, and the involvement of, a multitude of agents and governing agencies and can require substantial resources. Such participating agents may be located over a wide area and need access to a variety of information, documents and databases in a timely manner. For example, upon occurrence of a default condition (e.g., failure to make loan payments to a lender), recovery of the loan collateral (e.g., a property unit) could be voluntary or involuntary. If there was a voluntary surrender of the collateral to the lender, the services of a transporter, appraiser, liquidator, receiver, or attorney might still be needed to complete the recovery process. If the recovery process is involuntary, then in addition to the services identified above, the lender might also need the services of an investigator/recovery, repossession agent/bailiff, skiptrace agent or collection agency to recover the collateral.
In a conventional arrangement, a lender or insurer transaction involves extensive human and material resources at each stage of the transaction for manual processing, multiple transcriptions of common information, numerous record searches, and multiple assignments to various agents. Only limited access to pertinent information in a timely manner is available for those who need it. Accordingly, in the conventional process, the transaction typically requires multiple telephone communications, facsimiles, microfiches, hand written documents and printed forms. Each action in the process gives rise to the opportunity for the introduction of errors and the reduction of centralized control by a lender or insurer. Further, conventional systems do not transaction.
As such, there is a need for a system which can automatically, on-line link and, based on an access control permission granting process, provide each of a potentially large number of widely distributed participants with specific instructions, relevant information, searches, registrations and required documents in a timely manner to effect their part in the transaction and to create efficiencies at all stages of the transaction process.